December 12, 2024
Holiday shopping is stressful, but there are ways to manage both your stress and your budget during this time of the year.
The holidays can be overwhelming. What should be a relaxing time can quickly stressful and full of pressure to meet expectations both financially and socially. A recent survey by CPA Canada and BDO Debt Solutions found that 94% of Canadians will experience some level of stress during this season, with 39% saying they expected to be more stressed than last year this holiday season.
Many people find that the season sets them up for disappointment due to the financial strain of gift-giving, the societal pressure to create picture-perfect celebrations, and the busy schedules that leave little time for rest and enjoyment.
But reframing your expectations for the season can give your spirit a much-needed boost. By embracing simplicity and cherishing the moments that matter most, you can create a holiday season filled with joy, gratitude, and lasting memories.
Chances are, you have certain cherished holiday traditions that bring you the most joy. Think about what’s important to you and your family. If your wish is to simply spend quality time with your immediate family and closest friends, start practicing saying “no” to those outside your immediate circle without guilt.
Remember that, for many people, the holiday season includes time off work. If you’re taking vacation time, it’s important to try to rest and recharge your batteries for the new year.
The average Canadian will spend $595 this year on gifts, according to the joint survey by CPA Canada and BDO Debt solutions.
That same survey also found Canadians would be spending another $323 on entertaining others.
Creating a budget is the best way to reduce your financial stress during the holiday season. Start by listing all anticipated holiday expenses, including gifts, decorations, food, travel, and any additional activities you plan to participate in. Be realistic about what you can afford and set clear spending limits for each category based on your situation.
Remember, the goal is to enjoy the holidays without overspending and creating financial strain.
Once you have your expenses outlined, compare them to your available funds. Determine how much you can comfortably spend without sacrificing essential bills or dipping into savings meant for other purposes. Consider creative ways to save, such as DIY gifts or homemade decorations, to stay within your budget while still celebrating joyfully. It’s a good idea to track your holiday spending to ensure you're staying on budget.
Communicating your holiday goals and expectations with friends and family can significantly reduce stress and financial strain during the season. Have open conversations about gift-giving expectations, emphasizing the value of meaningful experiences over expensive presents. Suggest the idea of starting new traditions that focus on spending time together rather than exchanging costly gifts.
For example, plan a holiday movie night, organize a potluck dinner, or engage in volunteer activities as a group. These activities not only foster deeper connections but are also budget-friendly or even free celebrations.
Spending hours online looking for the perfect gift can be a frustrating experience and may cost you more than you want to spend. The trick to buying gifts under budget is to have a clear idea of what you’re looking for. Part of your holiday budget should include a column with ideas that include the interests of the person you are buying for.
If you’re shopping online, try to consolidate your order to save on shipping charges. You might find it easier to stick to a holiday budget if you limit your spending to debit.
A majority of Canadians (56%) will be using their credit cards to fund their holiday purchases, this of course isn’t idea but for purchases where you absolutely need a credit card, be sure you can pay off that purchase in January. Avoiding credit also means avoiding unwelcome post-holiday credit card bills.
When heading out for in-store holiday shopping, it’s crucial to stick to a list. You want to avoid impulse purchases.
Consider shopping in-store during off-peak hours to avoid crowds. Bring cash or use a debit card to limit overspending and stay within your budget. Remember, thoughtful gifts don’t have to be expensive; meaningful gifts will show you care more than the price tag.
The holiday season is about creating cherished memories and sharing in the joy of the season with others, and you don't need to spend a fortune to make it special. Look for local community events free or low-cost and offer festive experiences for the whole family.
Many cities also host holiday markets or craft fairs where you can enjoy the spirit of the season without spending much.
You can also host your own holiday events at home. Organize a holiday movie night with loved ones, complete with homemade popcorn and festive snacks. Create some DIY decorations to put up for the season with friends and family, or even have a classic night in with board games. These are all great ways to live frugally during the holidays.
By focusing on creating joyful moments and fostering connections, you can celebrate the holidays in a meaningful way that fits your budget and values.
A big reason why people get stressed over the holidays is that they are worried about adding to their debt levels. If you’re making monthly debt payments to various lenders, think about how you’re managing your debt. You may be paying more interest than necessary. Strategies like debt consolidation, paying down the principal amount of your debt, or requesting an interest rate reduction can free up more money in your budget.
If you need help solving your debt problems, it’s best to speak with a professional to learn about your options. A Licensed Insolvency Trustee can help you decide what debt relief option would work best for you.
Your first meeting with a Licensed Insolvency Trustee is free, confidential, and without obligation. Schedule an initial consultation to learn more.
December 12, 2024
Holiday shopping is stressful, but there are ways to manage both your stress and your budget during this time of the year.
